Anyone should be very wary of purchasing a vehicle when the seller does not have the title. The title to a car represents proof that a person legally owns the vehicle and has the right to sell it. If someone is selling you a vehicle without a title, you have no way of knowing if it is clear of outstanding liens. Lien holders send for the title if you live in a title-holding state. In non-title holding states, you have to apply for a lost title at the Department of Motor Vehicles or Secretary of State's Office.
Vehicle Financing Titles
If you buy a car using a loan, the lien holder is the bank or financing company that services your loan. In a non-title holding state, you will receive the title to your vehicle with the name, address and phone number of the lien holder printed on the front of the title. If you live in a title holding state, the DMV sends the vehicle title to the lien holder where it will remain until you pay off the loan.
Title Holding States
If the seller does not have the title to his car when you purchased it, it could be that he paid off the loan and the lien holder has not yet provided the new title showing the release of lien. If this is the case, the lien holder will receive the new title and mail it to the seller. The seller will then have to transfer the title to you. You must then take the title to your local DMV or SOS and complete a title transfer.
Power of Attorney
If the seller has not yet received the title when she sold you the car because she has not received a new title showing the release of lien, she can complete a Power of Attorney with Odometer Disclosure form. This form allows you, the buyer, to sign off the seller's interest on the car. The seller must complete the odometer information on the form and contact her lien holder to request that the new title be sent to you and not to her.
Considerations
If the seller is using proceeds from the sale of the car to pay off the remainder of her loan, ask her for a pay off balance and write a check directly to her financing company to pay off the loan. Then, write a check to her for the difference between the payoff balance and the purchase price of the car. The lien holder will still have to send for a new title, but doing it this way ensures that the seller can legally sell the vehicle and the lien holder will mail the new title to you and not to the seller.
0 comments:
Post a Comment